Tax laws Senegal
Senegal's tax system comprises various taxes, including individual income tax, corporate income tax, value-added tax (VAT), and property taxes.
Individual Income Tax:
Progressive Tax Rates: Senegal applies a progressive tax rate to personal income, with rates ranging from 0% to 50%. The brackets are as follows:
- Up to XOF 630,000: 0%
- XOF 630,001 to XOF 1,500,000: 20%
- XOF 1,500,001 to XOF 4,000,000: 30%
- XOF 4,000,001 to XOF 8,000,000: 35%
- XOF 8,000,001 to XOF 13,500,000: 37%
- Above XOF 13,500,001: 40%
Proportional Taxes: In addition to the progressive rates, specific income types are subject to proportional taxes:
- Wages and salaries: 11%
- Dividends: 10%
- Income from land: 20%
- Other income: 25%
Corporate Income Tax:
Standard Rate: The corporate income tax rate is 30% for both resident and non-resident companies operating through a permanent establishment in Senegal.
Minimum Tax: Companies must pay a minimum tax of 0.5% of annual turnover, with a maximum of XOF 5 million, even if they incur no profits.
Value-Added Tax (VAT):
- Rate: VAT is levied at a standard rate of 18% on most goods and services.
Property Taxes:
Built Property: Taxed at 5% of the rental value for buildings other than factories.
Unbuilt Land: Subject to a tax of 5% of the rental value.
Stamp and Registration Fees: Levied on various commercial transactions at rates between 1% and 5%.
Recent Developments:
Tax Reforms: The Senegalese government has revised the tax regime for alcoholic beverages and tobacco to protect local industries and combat counterfeit imports.
Oil and Gas Contracts: President Bassirou Diomaye Faye is renegotiating oil and gas exploitation contracts to increase Senegal's share of benefits, aligning them with current legislation.
For comprehensive and current information, consulting the official Senegalese tax authorities or a tax professional is advisable.
RELATED Blog
0 comments